Obama Care Will Implode and Kill the Economy-Karl Denninger

Analyst/trader Karl Denninger predicted years ago that Obama Care would “kill the economy” and “eventually implode.” That is exactly what’s happening now. Denninger contends, “The majority of the money we spend in healthcare is jacked up due to these monopolist policies which raise the cost four or five times where it ought to be. On top of that, we are being forced to pay for people who have made lifestyle choices that dramatically raise their cost of healthcare. . . . The health insurance people are faced with an untenable problem because if the only people who buy car insurance wreck one car a year, the cost of car insurance is $20,000 a year because that is the cost of the car.” Denninger goes on to point out, “The rate increases that are coming down this year are astronomical. I am seeing rate increases as high as 50% for inferior coverage. . . . Benefits come off your top line as an employer. So, all of this means much slower growth if any at all because all this money is being siphoned into the health insurance and healthcare system.”

With the economy sinking in part due to Obama Care, is the Fed going to raise rates soon? Denninger says, “Janet Yellen doesn’t have any choice but to raise rates. We have an emergency policy rate right now that is destroying the pension funds and the insurance companies in this country. This is where the pressure is coming from. It has nothing to do with the economy. It has everything to do with fixed income bond ladders. That is a mathematical problem that Yellen has to confront. She certainly is going to take a lot of heat, but rates are going to go up.”

Denninger contends, “It’s going to be a quarter of a point, and everybody will scream but it does not mean anything from an economic perspective. What it does is it signals to the market that the game of rolling down interest rates is over, and increasing systemic leverage, that era is over. That’s really the bottom line here. Valuations have grown over the last 30 years of the basis of a secular trend, and that secular trend has ended. It is mathematically certain that is has ended. So, how long does the bubble remain? Where do we go from here? Not in a positive direction.”

We’ve played serial bubble blowing to the point where we are out of powder here. We are scraping the bottom of the barrel to get one more shot out of the cannon. I don’t see where Yellen gets away with this for any great length of time. . . . What I see is a global economy that has been running on fumes for the last couple of years, and cheap money has been powering it.”

About the Author

Greg Hunter

Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.

Comments

Todd12/02/2015 •

I think it is very important that we think long term. Long term is easy to see but hard to do. We can see that we are starting to have huge consequences from short term decisions. We must become as self sufficient as possible. The debt bubble has to end. If we are judging our worth in $ we are in a delusion.

One could drive a 4-ft copper stake into the back yard and a 4-ft nickle stake into the front yard. then connect a copper wire to each stake with the other end of wires connected to an insulated (from ground) terminal. Pour water on the ground around each stake. Then measure the voltage across and should see approximately 12-volts across the terminals. Can use old radiator cores with the tar coating scrubbed-off in place of the stakes for a more reliable effect.

Smart guy. Very good observations about the undervaluation of bonds and other assets. When the sh*t hits the fan, many speculators (notice I don’t say investors as those are a dying breed) will experience a self-realization, cold-sweat as he puts it, and will panic sell (whatever the asset).

As for the health care mess in the USA, this is decades in the making (even long before the Obamacare fiasco). If you really want a fantastic summary of how exactly things have degenerated in the system (with many thanks to the lobbyists and corrupt Congressmen&women who have filled their pockets in the process), have a look at the following article (which has a nice part from an M.D. who has worked over 30 years in the system); it’s definitely worth the read:

Wow! I went to Mr. Denninger’s site and loved it! Blunt, direct, and in your face! Clean graphics with a few ads and not much else. I had not heard of Mr. Denninger until today but his site will be added to my daily reading list! I will look on Amazon for a used copy of his book.

I am done with the MSM financial media. Absolutely done! I watch it so that I am aware of the government propaganda storyline. Do I believe them or trust them? No. Never again.

An interesting video titled “How Government Solved the Health Care Crisis!” https://www.youtube.com/watch?v=IBFoC1gkExI , read by Stefan Molyneux. It was written by a doctor and is a brief history of healthcare in America.

I’ve long been convinced that Obamacare was always intended to be a stepping stone towards universal health care.

I have been reading Mr. Denninger for a couple of years. He is always blatantly honest in what he expresses. He also is one of the smartest guys out there. He will tell it like it is and that is EXACTLY what we need now a days. Merry Christmas everybody!! A special thanks to Greg for trying to find the truth where there is little to be found on MSM.

Excellent interview. Thanks to Karl Denninger for such clear explanations. He’s not only a knowledgeable person but skilled at teaching. Thanks to you, Greg, for your great follow-up questions. You really go to the issues of the moment.

01/December/2015
The Crumbling World Order and Who Will Pick Up the Crumbs?
Hugo Salinas Price

“The nations of the world are not going to flounder endlessly in the crisis that is upon us. Out of the huge crisis, China will break away and state its terms. And the terms will be: GOLD. The rest of the world will follow. “

Hi Greg
If the FED rises the rate even by 2-5 basis points due leverage they will either restart the QE or buy up the failing derivatives for covering the losses of the banks. Because the losses will be horrible and they will be able bankrupt the banks.
So they either destroy the banking system or the US dollar.
My 2 cents
Oracle 911

Yep! … the Fed will simply cover all the derivative losses … the way the Fed has covered every other loss the bankers have incurred! … negative interest on your bank accounts, bail in’s, hypothecation of assets, etc., etc. were all done to save the banks … no way will they allow the banks fail when they move rates higher!

He is so right about healthcare and health insurance. People will very easily live years with a junk car or minimal (if any) auto insurance, but will scream bloody hell if they even feel one sign of pain in their bodies, and rush to their doctor-gods to cure them. The fallacy fed to all of us by doctors and the healthcare industry is that they cure anything; only our bodies and our own immune system heal us, nothing that we ingest or have surgically removed. People live their lifestyles out of our fear to avoid suffering at all costs, and we can only ever eliminate fear with faith, i.e., faith in Someone greater than ourselves. We all have a time to live, and we all have a time to die, as the Scriptures have warned us.

Now that the NDAA has passed, the US is fully empowered to participate in WWIII, and that is where this is all going. Karen Hudes has said it plainly in a tweet, “We either have the global currency reset, or we have WWIII.” WWIII, though, fits better into the elites’ plans since the dawn of our modern political and economic systems, and that is, to reduce populations to more manageable levels, and to eliminate those they have always deemed as undesirable and a burden on society.

Planned Parenthood is only window dressing to the eugenics movement. It also plays out in every healthcare decision we face and receive. Vaccines are now also engineered for population control, and those who refuse vaccines (like me), will simply be slated for execution by other methods. The elites have always wanted to bring in the NWO peacefully, but if there is a blood bath to that end, well, so be it.

There will not be a US election next year; there cannot be. Obama must be allowed to continue his dismantling of what we have held most dear about our country, if he is even allowed to continue versus being replaced beforehand. I have wondered why the sideshow of Donald Trump has been allowed to continue for as long as it has. The only conceivable explanation is that, there will not be a US election next year; so there need not be concern about his poll numbers, or those of Clinton, or whoever else. WWIII will bring about martial law, or more fully implemented than it already is.

Now is the time to pray on your knees, and get your own spiritual house in order. Don’t look to anyone in this world to save you. It is a time not to let our hearts faint from fear, but also a time not to look back, as Lot’s wife did. It is easy to look ahead when we are the only ones suffering; it is much harder to look ahead, when those we love are suffering too.

CAK! I have had three times in my life where modern American medicine has saved me from CERTAIN death, where no amount of immunity, body defenses, or incantations would have led me to survive. I agree it is horrifically expensive and getting more and more bureaucratic and frustrating. Doctors study and train (at a fairly LOW income) for anywhere from eleven to fifteen years after high school to develop their skills. Sure, there are some cold and greedy fish out there, but by and large, they are dedicated professionals. In my experience.

Love Mr. Denninger,but he is off base a bit on the bonds.If you hold to maturity,you don’t lose principle.Your 2% only makes 20k,but all you lost was the opportunity to make 50k.Nothing to be written off unless you sell before maturity.

chairman of the bored … a ten year bond that losses 10% a year due to the Fed’s exponential printing will have “zero value” in ten years even if the principle is paid back in full with worth less fiat … so your statement “If you hold to maturity you don’t lose principle” … is incorrect … you don’t lose “numerical” fiat as stated but you loss 100% of your purchasing power … so effectively your bond is worthless after 10 years … and that is assuming only a 10% inflation rate … the true inflation rate when compared to gold is more like 20% per year!

Karl is right on the mark. Supposedly the recession ended in June 2009. So for 6.5 years we’ve had this economy. Wow! It’s hard to tell the difference. This “expanding economy” has been maintained by funny money and “adjusted” statistics. Everyone knows what the truth is, but like in the story, no one wants to tell the emperor that he has no clothes.

This is the fruit of leftist/liberal/Keynesian/Democrat Party socialism.
Conservatives always try to warn that liberalism will produce bad results, but the left would rather have a flashy, politically correct “Santa Claus” government than a boring, mature, wise government. Then when their Big Nanny Government policies result in disaster, they blame the right for “obstructionism”.

Ted Cruz is the best candidate running in this election cycle. He’s a pro-Israel Christian and a true fiscal conservative – the exact opposite of Hussein Obama.
Even if you don’t like any of the candidates running, at least get out and vote AGAINST the Democrat.

“Part of people’s concern is just the sense that around the world the old order isn’t holding and we’re not quite yet to where we need to be in terms of a new order that’s based on a different set of principles, that’s based on a sense of common humanity, that’s based on economies that work for all people.” — Barack Obama

“We reiterate our strong commitment to the United Nations (UN) as the foremost multilateral forum entrusted with bringing about hope, peace, order and sustainable development to the world. The UN enjoys universal membership and is at the center of global governance and multilateralism.” — Fifth BRICS Summit Declaration

You need to go over to the westernrifleshooters blog and load Matt Bracken’s “Enemies Trilogy”. It is free today and tomorrow…Probably can access it via Amazon without bringing any attention to yourself. Me, I don’t really care at this point.

If elections are not rigged the only explanation is that a majority of people who bother to vote continue to vote for the people currently running the country…..which means you are in an ever diminishing minority already drowned out by a vocal and highly motivated and irrational majority and about to be completely upended by a tide of voting illegal immigrants…tell me, how does your vote matter again? haha thats just too funny.

Someone will become the next President.
Since Jesus Christ is not running, whoever is elected will be imperfect.
We will either have an imperfect Republican or an imperfect Democrat.
The Democrat will certainly continue the socialist, destructive, anti-freedom agenda of Hussein Obama.
The Republican at worst would slow that agenda and at best reverse it. Probably somewhere in between.
Whoever doesn’t vote because the candidates are imperfect carries the responsibility and blame for whoever is elected.

Someone will be president? You mean someone will rule; how they rule and how they get to rule is up for debate here given as to how the constitution and the rule of law have been severely subverted and ignored lately–the situation we are in is not at all something that can easily be undone, unless drastic measures are taken we will default into tyranny and chaos, and even those drastic measures would likely lead to disaster.

Re Karl Denninger interview: He has no clue as to the effect raising interest rates just 1% has on the 1+quadrillion dollars (face value)of derivatives. Most derivatives have an interest rate component and thus the size of the effect 1% increase can cause another Lehman moment. His analysis of the pension fund problems and monopoly of the health care industry is spot on…but the problem of all these potential ‘black swan’ events is becoming unmanageable; especially by someone as incompetent as the Fed G’vt.

Single payer…the ultimate goal of the commies in charge of the USA is just another huge tax income stream for them…and no care for you. Especially if you have an (R) by your name. The (D) only matters right now. Soon that won’t matter either.

I bet most of you didn’t realize that if you can qualify for Medicaid you automatically qualify for every single free entitlement available…Housing, ebt, phone, power, etc., etc. da-da-dat-da-da! Regardless of the fact whether you were born in the US 50 years ago or were dumped in here yesterday from Syria, Mexico, Cuba, etc., etc…Every single day it increases…with only collapse in sight.

We all know who is on the hook to pay for this crime against humanity.

Greg,
I’m going to make this very simple. The Affordable Care Act was nothing more than the Insurance Corporations attempt to fill their pockets with loot before the economic collapse takes place. How do I know that? I sat down with a CEO of major Health Insurance Company 12 months before the Affordable Care Act was implemented, and he told me at that time that the overall cost projections to implement the plan were 2 Trillion dollars MORE than the governments original estimates. They knew going in there was no way to sustain this plan. So why would they do it? Especially knowing all they had to do to fix the problem was to expand Medicaid for low income families, and lower the cost for State Insurance Pools for those who couldn’t get coverage for pre-existing conditions.

The answer is simple. Its the same reason the Banks are buying up Gold right now. They all know our current system is unsustainable and is going to collapse. The Affordable Care Act was just another method to drain every last drop of blood, from an already dead body. Like Karl said, the government doesn’t care whether you pay the tax penalty, or buy the Insurance. Either way they’re going to get your money.

For those of you who are government employee’s. You may want to check and find out what the government is planning on doing with your retirement funds. There’s a pretty good chance that since they’re putting it back in the general funds that you will never see it. Another nice gift, courtesy of the criminal cabal on their way out the door.

Greg,
As I stated the other day, the Yuan inclusion into the IMF basket is a Trojan horse. Like “V” and many others have stated, be included was not the ultimate goal by the Chinese. The main goal is seizing control of the worlds entire financial system and replacing the Petrodollar.

As this months progresses, and the Chinese put their exchange mechanisms in place world wide, they will wait until the time is right and spring a “Gold Price Reset”.
Once that takes place the Chinese will do four things.
1. They will immediately back their currency with gold.
2. They will make Shanghai the central trade hub.
3. They will reveal their true holdings ( that they have previously withheld)
3. They will ask for the IMF to audit the U. S. holdings.

The timing of this event is going to be decisively much harder to predict than the Yuan IMF inclusion was, because all the main players know that this is for all the marbles and they are eerily quiet.

The global banking systems are currently being saturated with Yuan liquidity and bonds, much like you would fill an engine with oil and gas. Once that’s complete, the Chinese will fire off their new economic engine by rolling out a Gold Price Reset and by making Shanghai the new center of trade. At that point our discussion here will be over, and so will the Petrodollar as nations around the globe flee to the new “Gold Backed Yuan” for safety and International Reserve Currency.

Timing? I don’t know. All I know is that the PBOC has stated that it will occur sometime before the end of 2015. If you are resting on the idea that the United States still has gold reserves to protect itself in the event of a Reset? All I can say is I have some cemetery plots in central Missouri I’d love to sell you.

All along your comments about China taking over has scared me. It sounds so plausible. I feel like you are applauding this action like it is a good thing. For Americans, this is definitely not good. The question is, How do “we” fight China? We can’t so what is next for us little guys?

Susan.
No applause here. Our government sold us out, and we were the collateral. Its time to cut the strings of government dependency and become self reliant. Those that can’t make the transition will die. Buy whatever you need now while you can. Time is short.

Greg,Jerry;
Today at ups we had 48 loads 8 were long, we started at 2:15 ended at 7:30. LITE!!!
Now yesterday we watched pat Robertson on 700 club and HE FINALLY SAID,”Folks, the Chinese yuan has become one of the sdr, basket of currencies, and this is devastating for the dollar”, He said “I bought Chinese stocks immediately “. In my mind I said, WHAT TOOK U SO LONG PAT?
I am watching rick wiles, Johnathan cahn on Jim Bakker show, and I see Michael Snyder often, and Rich wiles true news interviewed a guy yesterday, must watch!!! google it. Thanks greg H. we are ready, btw UPS gives me free health care, 100% for all my family, I have 7 at home on it. dental, glasses, and medical, 10 dollar co pay.

Greg: My grad school thesis (many, many moons ago) was how the transportation indices were a direct reflection of economic health. All of these indices now are at historic lows; BDI, intermodal trucking and rail. Containers from China are 1/2 empty, going west from Long beach, less than 1/3 full. East Coast RR’s have seen one of their most profitable segments, coal hauling, dramatically tank. I expect that OBama will bail out Buffet’s BNRR. as energy connected loads in the NW have fallen off the cliff. Revenue and earnings from both UPS and FEDEX after the holiday season will be disastrous; it’s already baked in.

Jerry, I thoroughly enjoy your posts, and your humor too. I trust, as well, that you are not letting your “heart faint from fear.” It is easy to feel like the little guy with no way out, unless we believe in the Big Guy upstairs. As to the US dollar, technically, our Federal Reserve Note, my understanding of the words on each bill, “Legal tender for all debts, public and private,” implies that by using one (which we all do in daily life), you are contractually obligated to pay for all “public” debts, whenever they are past due and deemed collectible. That way, we all are screwed, save for the elite who have ever only purchased gold and silver, and who, per Lindsey Williams, “do not hold title to anything in their own names.” It is all hidden under various aliases and other entities.

Whatever we own now, bought and paid for with Federal Reserve Notes, can be viewed as collateral to pay off US bond holders when payment is due. Your home, your car, even your favorite child’s toy. It could all be easily explained to the populace, if they were simply willing to return to medieval times, that of lords and serfs. Otherwise, WWIII is coming … and save only our redemption from above.

CAK.
I assume since you read the scriptures, that you know what a “Bond Slave” is. That is what we are, and have been for generations. I celebrate the destruction of the bankers slave system. For with its end comes our eventual freedom and the dawning of a new century. Even Christ knew who they were. That is why he drove the “money changers” from the Temple.

I doubt those in power will allow the banking system to be destroyed. They’ll keep doubling down, bailing out and implementing their agenda.
Next up is the abolition of currency. Everyone’s earning/spending/saving will be carried out under the unblinking scrutiny of the New World Order. The only dawning we’ll see is the dawning of the Antichrist.
I’m sure glad to be a Christian in these times.

@allen ols – You are impressed that Pat Robertson has bought Chinese stocks? Amazing that a (so called) Christian would invest in China. He must not know what the Chinese government does to its citizens. Buy hey, I guess a guy who used money, intended for refugees in Africa, for his own diamond-mining venture is open to climbing into bed with just about anyone – http://www.nytimes.com/1997/04/28/us/pat-robertson-s-aid-sent-to-mines-pilot-says.html

And UPS give you healthcare for “free”? Are you kidding me? Nothing is free. Someone has to pay for it. In your case those that use UPS pay for you, your wife and several children. It’s a good gig if you can get it but nothing is free in this world. When someone says something like that it just validates what I have long known, that Americans don’t have even a basic grasp of economics.

Mr. Denninger is unaware on Obama Care , just like Alternative Broadcasting is unaware . 42 USC sec. 18115 ” Freedom not to participate in Federal health insurance programs ” No individual ,company ,business ,non profit entity ,or health insurance issuer offering group or individual health insurance coverage shall be required to participate in any Federal health insurance program created under this Act (or any amendment made by this act),or in any Federal health insurance program expanded by this Act( or any such amendments) , and there shall be no penalty of fine imposed upon any such issuer for choosing not to participate in such programs. Obama care is a flagrant misuse of an Excise tax for ulterior motives . Go to losthorizons.com search Obama Care

The decision will go into effect on January 1, 2016. From what I can see, it’s a tightening of the Dodd-Frank Act and a warning that they will not be making emergency loans anymore. In today’s interview, Denninger refers to the emergency measures we have had in place for several years, and this decision seems to support his contention that this can’t go on forever and the Fed knows it.

Also, while the IMF voted the Yuan into the SDR basket of currencies on November 30, THAT won’t go into effect until October 1, 2016. so it’s not going to be the cataclysm that takes the dollar down. In fact the percentage allotted to the US dollar is effectively unchanged. The 10.2% weight given to the Yuan was achieved by shaving something from each of the other currencies, such as the British pound, but the US dollar was essentially untouched. Not a big surprise, after all.

” The 10.2% weight given to the Yuan was achieved by shaving something from each of the other currencies, such as the British pound, but the US dollar was essentially untouched. Not a big surprise, after all.” ……..Exactly NC, China MUST declare it’s holding (gold) to stop the madness. Everything else is just talk.

Anyone with the slightest amount of business sense knew Nobama care would destroy this country. The idea that government can do it better also was a joke…. But the biggest lie is how Ocare can suck the life out of our economy at the same time as the government shows it to be a leading cause of growth. Ocare is now one of the main reasons GDP is still positive.

Oh, but the claim will be that government can do it better. They’ll blame the insurance companies, healthcare providers, Republican, the tea party and everyone for the failure and say that the only way is to have single payer.

Slam dunk Greg. Love Math, always did because it is irrefutable. He states it simply, candidly and all of us out there PAY ATTENTION. What will it be that sets this off? I don’t know either, but the mall, the stores, the fast food lines are dwindling, I see the same thing Karl does. Finally, if your home, car, pension, etc., are worth that much less, and there is no more access to borrowing because of the value of these assets….where does that leave all of us, especially those in debt with these worthless assets? 2008 looks like a walk in the park compared to what is coming. Buckle up, she is going to raise rates, watch as confidence starts to wane, and she will be portrayed as one of the worst Fed. Chairs in our history. Behind the curtain was Greenspan and Bernanke who kept pulling the levers, but prance her out for the bread and circus show. The show is over, time to take cover.

Hearing about the nightmare of Obamacare is truly frightening. Stay away from it if you can. Personally I’ve rarely had health care in my life. I haven’t been to an allopathic doctor since I was about 21. I’ve done occasional acupuncture or chiropractic for a tune-up when necessary. Yoga and meditation work wonders. The human body is hard-wired for health if you treat it right.

WOW! I was so wrong on the IMF adding the yuan to the basket of currency. This move is anti American and is a big negative for the future of America. I didn’t factor in 0bama’s desire to total destroy America.
Oh, well. Not the first time I’ve been wrong. To all of you that said this was going to happen I said “No way”, Kudos to your insight. I was way wrong

As Carl Denninger says “cheap money will destroy our world” … just look at what the evil bankers have done since 1971 when the United States dollar was completely detached from gold (ushering in the era of “only fiat money” worldwide) … the dollar has lost 83% of its purchasing power … a 1971 dollar is now worth only 17 cents … these evil people are destroying our world … those who bought gold (near the peak) in 1980 spent about $800 (in 1971 dollars) for an ounce … to buy an ounce of gold today (near the trough) at $1050 per oz with 1971 dollars (worth only 17 cents) means we are “actually paying” $6176.47 per oz right now … and those who sold gold near the high at $2000 per oz in 2011 really sold at $11,764.70 per oz (in 1971 dollars) … and we think we have to wait for China to boost the gold price?

Consider someone who unfortunately bought one ounce of gold at the exact peak in 1980 right before Paul Volcker “smashed gold” and paid $800 (1971 dollars) for it … and simply held it until now (even with gold’s recent smash down) it’s current price $6176.47 in 1971 dollars … ($6176.47 – $800 = $5376.47) … that is a profit of $5376.47 dollars on a $800 dollar investment … or a profit of 672% over 35 years (19.2% per year on your money) and that’s with the timing of the gold purchase being unfortunately as bad as it gets!

We should all have learned a lesson from this … “timing is not important” … being in a system where a Fed keeps printing money at ever faster and faster rates (but pretends in all their manipulated numbers they release that there is “deflation taking place” ) so they give people no COLA’s … and justifies the evil ones printing even more fiat. But simply buying gold and holding (even if you buy gold at its peak) … you will find that decades later you did better then being in the stock market over all that time … stocks only return on average about 7.5% (including capital gains and dividends) … so by simply getting out of the Fed system (GOTS) … and holding physical gold … the banking elite (who can’t stop multiply their fiat money providing free money to themselves) will eventually make you a “nominal” fiat Billionaire … however … if you don’t by physical gold and “stay in their monetary system” you will become both a pawn and a pauper of the elites… not being able to afford to put food on the table for your family … just like people in Zimbabwe!

According to an old saying an ounce of gold should be selling for the price of a fine men’s suit (on average about $60,000 dollars) … which is very near the price Jim Sinclair figures an ounce of gold should be selling for.

The “average cost” of a fine men’s suit costing about $60,000 dollars today when recalculated in 1971 dollars comes out to about $10,000 dollars back then (60,000 x 0.17 = 10,200) … so gold should have gone to about $10,000 dollars per ounce back in 1971 (just to be able to buy a fine suit) … but Paul Volcker cut gold’s “true peak value” by about 12 times when he stomped on it at $800 dollars per ounce back then “keeping it at about 12 times less then a fine men’s suit” … currently gold has been stomped down again … but this time with gold at $1050 it is about “60 times less then a fine men’s suit” … talk about bargains … as for silver it has been stomped to 70 times less then gold’s current depressed price … what the Fed has created is unreal!!

When you do the numbers that way it makes sense. 19% per year versus 7.5%. Because PMs are not discussed much in the MSM I have only recently begun to acquire them. Silver is still cheap @ $14-and-change per ounce. When things get bad, which do you think is going to be more valuable? 1 ounce of silver bullion or a $20 FRN (federal reserve note)? I have both but my guess is that the silver will retain its value unlike FRNs.

As a German I think the only reason why the Obomba health system doesnt work out is, that it got implented at the wrong time ( in econ. weak times).
Rightly managed out of a strong ( and empoyed) workforces in good econom. times, the system would have no trouble to support the weak and sick and needies of the society.

We dont gave that kind of discussion here, but then – our system started in 1884 – ( Bismarck introduced it) and still goes strong, hear, hear.
The only danger it faces now, is the 0% interest policy of the satanic Draghi which pulls the carpet away from any capial based foundation.

Uma,
A better system would be a strong, resilient free market in which healthcare prices are kept low by market forces. When people are free of government interference, they naturally grow wealthy and can take care of their own healthcare needs.
When Big Government robs the wealth of the productive at gunpoint and redistributes it to the lazy and indigent, the natural outcome is that the lazy and indigent become dependent on “free” money and benefits.
Free-thinking, productive workers in America are now outnumbered by those who receive “benefits” and government employees who produce nothing.
How long do you think that can last?

ACA is a key part of the surveillance state. Why else would you put the IRS in charge of collections? The reach of the IRS is unlimited to include overseas using FACTA. Electronic medical records has been pushed for the past 15+ years. This allows access by the police state officials (local/state/federal) to access anyone’s medical history. Judges will sign off on any warrant to gain access.
The ACA ties in with the gun control grab coming in the near future. Easy access to medical records will allow the police state to see who is on medication for mental illness. There was the recent expansion of the DSM-5 to allow for a diagnosis for just about anything. Unfortunately, the medical profession has bought into the scam of mental illness propagated by the police state, big pharma, and insurance companies.

It is interesting to note the number of new diagnoses that have been added to the pediatric population. What used to be normal boy/teenager behavior is now labeled as Oppositional Defiant Behavior, Conduct Disorder, Intermittent Explosive Disorder, etc. The diagnosis can be tagged on a young person and will follow them for life in their electronic health record. Too bad parents and physicians are not clued into the system.

When working in the clinic, I am very cautious of what I write into the medical record. There is pressure from government medical (IHS, VA, MEDICARE) and .gov controlled insurance (all of the commercial) to document everything. There is doublespeak about a “mental health file” that is not supposed to be accessible. Rubbish. This is the file that they (.gov) really wants to access.

On the lighter side…Russian space command tested an anti-satellite weapon this past week. The first line of warfare begins in space. Taking out communications, target coordinating, and intelligence capability in the space theater is priority one. The USA would be crippled. The USA relies on Russia for rocket engines so loss of satellite capability would be a problem. It would affect the launch and targeting of sub based ICBMs. I am sure that sub commanders have orders to launch contingency plans.

Here in Phoenix it is noted that there are major operations going on with Luke air force base. Also noted additional unmarked helicopter (of all types, a damn UH-1H) operations. We recently had SOF running night operations in downtown Phoenix and flying overhead throughout the city at night. We do have two high value strategic targets here in Arizona: Palo Verde Nuclear plant and Hoover Dam.

Interesting to note the influx of middle eastern males at the border. I was at the Costa Rican/Panama border crossing in July 2014 waiting to process back into Costa Rica when I observed two pricey Toyota SUV’s arrive to the immigration with 10+ males dressed as though they just arrived from Pakistan/Afgan carrying Spanish passports. I mentioned to my Aussie friend that it appeared that the Taliban arrived. Some had the jihad beards.
Merry Christmas

EddieMD … another key part of the surveillance state is to stop issuing paper cash and take “coin cash” out of peoples pockets … imagine having some coins in your pocket and the Gestapo decides they want to restrain you … now that coins are being “made magnetic” they can turn on a big electromagnet and stick you up against a wall or pull you into a wood chipper if they want … that threat alone … will make people stop carrying con change in their pocket! … and there you have it a “cashless” society!

Merry Christmas Dr. Eddie! and to all the other USAWD forum posters! Great post and critical information with regard to medical information following you for life. You are 100% spot on. This type of medical surveillance reminds me of the sci-fi movie “Gattica.” I wish I remembered the book but there have been similar sci-fi novels that have explored civilizations that rank people based upon their genetic qualities and genetic perfection. Those that are genetically inferior end up being in a life-long caste system. The VA has been pusing the Million-Veteran-Program for a few years. Oh it sounds great. Join the MVP program. If you don’t pay attention when you check in for an appointment you can end up (inadvertently) signing up for this program. What is the VA MVP? A genetic database.

About your other comment with regard to reloading, yes, yes, and yes! I grew up reloading and fired expert in basic training. It was easy because I grew up shooting different guns, every weekend, for fun, as a kid at a local gravel pit. One day was for shooting and the other day was for 4-wheelers high marking. Grew up in the countryside able to roam free, shoot guns, fish.

Once again, Jerry is spot on. CAK, you predicting that there will not be an election, will only help the 100% strikeout rate on predictions here. We know the future will be ugly, let’s not pretend we know otherwise. Gold, pretty much the only safety net besides guns, ammo, water and food. I’m set, just need to purchase that RV to get outta dodge when TSHTF.

The IRS will recover the costs of your non-participation in the ACA. You may pay the tax penalty every year but when you show up in the ER with a stroke, MVA, MI, or traumatic injury without coverage, Uncle Sam through the use of the IRS racket will make a determination of what assets you have and will levy your bank account and potentially take your home/property.

The ACA is nothing more than a population control system run by the IRS.

…”when you show up in the ER with a stroke, MVA, MI, or traumatic injury without coverage, Uncle Sam through the use of the IRS racket will make a determination of what assets you have and will levy your bank account and potentially take your home/property.”

So, do you have an easily accessible few hundred thousand bucks to pay out of pocket for the care if you don’t have coverage? If you don’t have that money, then who do you expect to PAY for your care when you have a stroke, MVA, MI, etc?? Should the docs, nurses, EMTs, and all the rest just take care of you for nothing? Or maybe they should refuse you [or your parents, wife, kids] treatment in which case you’ll scream bloody murder about death panels.

To the “heat generated”by medical care cost increases … to the “hot air” released by politicians at the global warming meeting in Paris … we should see a nice increase in the amount of carbon taxes each nation will now have to pay to the Rothschild’s … all the while the ice age that began 10,000 years ago is still making the ice sheet in Antarctica larger … but never mind these “real” numbers … the elite need “more money” … because printing infinite amounts of fiat is not working good enough for them (people are beginning to buy gold) … so they must “fiddle with and manipulate” all the temperature numbers they can get control of on Earth … in order to generate profits that will not spike the gold price higher … for they will not be limited in their greed!

Hey Colin I am so happy you didn’t leave. So how is life down under? The Aussie dollar and NZ dollar have taken big hits (similar to that of the Canadian dollar) this year. Can you please tell us how this has impacted your daily life? Has the cost of mortgages gone up or down? Prices for housing up or down? Price to buy / finance an auto up or down? What about the cost of food, especially imported food? And what about the cost of other imported items? I am guessing anything made in the USA has gone through the roof!

Hi Faith
I guess all things considered life is pretty good down under.
Having said that and reporting from main street I see a distinct lack of disposable income as the continual inflation on necessities and living expenses marches on relentlessly. My partner for instance, works part time and has not had a pay rise in over 10 years. In that time, the cost of groceries and essentials would have at least doubled.

The wealth gap in NZ has increased faster since the mid-1980s than anywhere else in the developed world. In that time, the average real income has more than doubled whilst for someone in the lowest 10% echelon, their income is lower than it was in the 1980’s

As a beef farmer and an exporter, the strength of the US $ has protected our beef prices to a degree in spite of a slight seasonal easing in world beef prices. Having said that I can’t think of another commodity that has held its value like beef has through these troubled financial times.

Mortgages have eased slightly and I noted in the last few days a 12 month rate advertised for 3.99% for home loans. This is the lowest I have seen for a very long time. Most 1 year home loans are in the 4.35- 5% range. The lowest 5 year term I could find today was 4.99%. Note these are housing loans and are generally about 1% below business and farm mortgages.

91 octane petrol is currently NZ $1.91/litre and diesel $1.16
Compared to one year ago at $2.00 and $1.32.
Converting this to a US price per gallon would be $4.84 for petrol and $2.93 for diesel. These prices will sound horrendous to you in the US, but they were worse one year ago. You would expect fuel prices to be lower than this because of the current low crude price but in NZ the commodity price makes up only one quarter of the pump price. A 50% reduction in oil price only translates to a 12.5% reduction at the pump. Taxes make up almost half the pump price.

In Auckland, our main city which comprises roughly one third of our countries population, the average house value is now NZ$920,000 which is an increase of 24% from one year ago and a lift of 7.3% in just the last three months. Inflation adjusted, this makes the values 43% above the previous highs achieved in 2007. These rises are mainly attributed to immigration and historically low interest rates. The national average house value is now $550,000.

Yes in general, anything made in the US is very expensive. We buy very few US made vehicles, but this trend goes back a long way. It would be pre 1960 that any large percentage of imported vehicles came from the US. The recent change in the dollar wouldn’t have made a whole lot of difference because we weren’t buying anyway. Most other goods that we would assume were made in the US are made somewhere else, but this will be absolutely no surprise to you whatsoever.

Best wishes to you Faith
Hope I answered most of your questions.
Cheers
Col

Clive Maund has just released a good article about the near future for gold. A few weeks ago he predicted a massive smash in gold due to COT report numbers, but now those numbers have miraculously turned around and are the most bullish since 2001.

Jim … Clive like many others say “if Yellen raises rates the stock market will collapse” … now just who do you think controls the stock market? … once we get that straight in our minds … it is easy to see Yellen can raise rates using the Plunge Protection Team buy, buy and buy stocks with exponentially printed fiat money “out of thin air” and actually push the stock market up as rates rise … all they have to do is spin a little disinformation upon the sleeping public mind … tell them that rates are going up because of “expected inflation” (never mind the fact that Social Security recipients won’t be receiving a COLA this year) … they will now likely tell us the are fighting “expected inflation” … and this must be controlled by gradually raising interest rates … the public (like puppets on a string) will hear the Fed’s words about “expected inflation” and (like Pavlov’s dog) jump into stocks and gold with both hands as an “inflation hedge” … you may say “what about the derivatives imploding with higher rates” … be assured the Fed has probably printed enough fiat behind the scenes to cover every derivative failure they can possibly conceive of!

Hey, greg and watchdoggers, ridiculous news from Japan. My morning paper today carries an article showing that a box of locally produced high grade strawberries has sold for 54,000 yen or about 450 dollars. Yep, that’s 28 dollars for one strawberry. Like I have said, someday we will all be paying for these financial shenanigans. The adage “A fool and his money are soon parted” comes immediately to mind. Remember you read it here first- just ’cause I like greg and his site.

Wow Jon! So are you saying that summer I spent on Lopez Island in the San Juans learning how to run an organic farm was not a complete waste? Probably that summer spent learning organic farming practices will end up being worth more than my Philosophy degree. Great info.

As Chri says: “Making cheap money will destroy the world” … and they are making cheap money right before our eyes … to prove it to yourself get a magnet and hold it near a Canadian nickel … years ago when money was money … and had real value … picking up a nickel off the ground was worth the effort … when I was a kid and saw a nickel down in a subway vent I would go through the trouble (unlike kids of today) of putting a piece of bubble gum on the end of a long stick to retrieve the nickel … bankers today seem to be going through a lot of trouble to retrieve nickel also … they’ve already stolen all the nickel out of the Canadian 5 cent piece (there is not a drop of nickel left in the coin) … put a magnet near a Canadian nickel today and you will see just how desperate they’ve become “to retrieve every drop of nickel” out of it … they’ve now made the damn 5 cent Canadian coin out of “iron” … so now we need 20 “iron’s” to make one dollar!

But we should be asking ourselves a more important question … just why would anyone need nickel so desperately that they would have to steal it out of their most basic coin (when supposedly commodity prices are heading to zero along with gold)? … could the answer be that nickel metal will be in huge demand to make all the Ni-Fe batteries (with a 100 year lifetime) for the coming age of solar power?

Two critical metals … will soon take down the World Energy Cartel … silver and nickel … silver is going extinct … and I bet nickel will soon be in very short supply … so stacking a bit of both … might turn out to be a very worthwhile endeavor!

If Yellen raises rates the stock market will collapse. If the stock market collapses then 401k’s and other market based retirement plans will collapse. IMO Yellen will ride this insanity train till it implodes.

OK you loony tune neocons (continually poking at the bear) … now look what you have wrought … Russia is developing a nuclear torpedo drone that will take out and radiate and contaminate all the strategic ports on our east and west coasts and can even shut down the Panama canal … so you numskull neocons go ahead and try fighting a war with Russia and China without any usable ports to supply the military … you neocons must think it is funny because you sold all our ports and the Panama Canal to China … actually I’m laughing right now … because it is kind of hilarious!http://freebeacon.com/national-security/russia-reveals-secret-nuclear-armed-drone-sub/

I got it … thinking like a neocon … they probably figure in their loony tune brains that when Russia destroys all the ports on the East and West coast of America and take out the Panama Canal the Chinese who own all these ports will be so incensed that a war will break out between Russia and China … then once the Russians and Chinese destroy themselves … the neocons figure they can walk in pick up the pieces and take the entire world for themselves!

Under the ACA/ObamaCare….my premium has gone up three times. It was $52 first, then it went to $153, next $171 and as of tonight at open enrollment it has gone to $200……..all for the same exact plan from the get go!! Plus I had to pay $1100 in taxes last year!!!! I didn’t have coverage the entire 12 months so I was penalized for that and then my income was underestimated so I had to pay that back to the gov’t. as I was overpayed on the tax credit!!!!!!!!!!!!!!!!!! UGH!!!! This will NEVER work here in the US. The ACA was the worst thing ever!!!!! Obama wants a socialist, Muslim ran USA, thats it!

Hi Greg,
I wanted to give a short summary of how the ACA(what a name!) has impacted the veterinary community. Before the ACA, we had a wonderful group health policy administered by the AVMA and underwritten by New York Life. NYL was very selective on whom they wrote health insurance for. The veterinary community is very conservative and practices good preventative medicine on themselves as a whole. As a result, our premiums remained very low. It gave great peace of mind to have this policy. When the ACA was passed, NYL was informed that they could not selectively choose whom they wrote health insurance for and if they wrote if for the AVMA, they would have to write if for EVERYBODY!. They quickly informed the AVMA that they were leaving this area of insurance and the AVMA could not replace them and informed us that we were no longer going to have group health insurance. I, along with thousands of other veterinarians, was very upset. I found a replacement health care coverage with Assurant for approximately double what my AVMA insurance had been and with a much larger deductible. I had this policy for two years. Now, Assurant has notified me that they are leaving the health care business. My insurance provider told me there were 11 companies writing health insurance last year and this year it has dropped to three. I now had to obtain a policy with Blue Cross/Blue Shield and my premium is going to be QUADRUPLE what my AVMA policy was and once again the deductible was roughly increased half. On top of not having a great group policy, I am having to spend many hours researching policies and filling out countless forms. Along with the huge increase in premiums, this is a significant example of time stealing. All in all, I view the ACA as morally equally to blatant theft! Seeing our wonderful health care system that took decades to evolve and put in place dismantled in front of my eyes is very sad. Anyhow, thought you would like another example of the ACA in action. There were reports and polls before the ACA was passed that 80% of the American public was against the ACA being passed. This illustrates convincingly to me that we are no longer a representative republic.
Dale

Oh my, must we be constantly bombarded by the bonfire of the vanities? I like this man Denninger. He smiles readily as he speaks his truth.
i have tried to understand all the failing webs of the PTB. It seems an endless mess of malfeasance, greed, and criminal intent. I always remember Kyle Bass’s comment to watch the 10 year bonds. I took this as the critical tripwire that the mess is collapsing.
mr Denninger lays it out plain and simple how the folly will surely end. It’s hard not to suspect there is an intention behind the machinations of the fed…they are economists for Heavens sake ….they must have had some suspicion what an orgy of free money would do in such a criminal power structure. Of course, one should always remember the fed is an organization of private banks…..what the hell else should we have expected from this wall street umbrella?

Best interview of the year Greg. SO much good stuff in there. Loved his explanation about the bonds. It finally clicked for me. The companies do not even have to go bankrupt and have literal failed bonds for the bonds to fail. The opportunity cost of being in an underperforming bond relative to new issues will result in the whole thing coming down. Great interview!

I have a friend who last year had to pay medical payments of $800 a month for him and his wife, with $6000.00 deductible and then only 80% to another level before insurance kicked all the way in. This year (Washington state) he only has to pay $200 for him and his wife with a $150 deductible. Apparently it’s based on income. You can get a subsidy from tax payers. These people have all kinds of assets, property, bank accounts you name it and just because they were not making a certain amount ,took a month off, they got themselves into an income that let tax payers step in, How can a system like that sustain itself. .It’s not fair to the rest of us. Especially if they don’t include all income. (some income under the table so to speak)

Russia going after ISIS was hitting the Turkish President right in the pocket book … so the crook ordered the shoot down of the Russian jet ,,, to try and save his family some “under the table” money … what he did for the Turkish people was to deny them a very lucrative gas pipeline deal with Russia and the imposition of additional sanctions by Russia on trade … just as here in the US … politicians worry more about their own personal pocket then what is good for the American people! … http://www.nbcnews.com/storyline/isis-terror/russia-accuses-turkeys-erdogan-involvement-isis-oil-trade-n472596

Greg, I only wish that you had asked him what the statists/collectivists will do when obamacare finally does crash…how long it will take them to force everybody into a single-payer system…which seems to be the plan. Other than that, he’s a great interview -and I know that you are wise enough to stay away from the PM discussion with him…he just doesn’t like them.

What it tells me is that the central planners are not going to give us any significant warning as to when they will deicide to spring the trap door on the dollar by pinning the Gold Fix to the Yuan. But I can tell you this. It is apparently coming soon, because these events seem to be precluded with false flags like the one that is going on in California. If you remember the Paris shootings were happening at the same time the G2o was meeting to discuss the IMF inclusion of the Yuan. I fully expect these events to pick up speed as we approach the collapse point.

Here’s something very interesting that happened today and should make major headlines but instead all we hear is silence. S&P Downgrades eight of the largest financial institutions in the U.S. Now if that’s not front page news I don’t know what is:

If they are doing tax planning and they have embedded losses, then they might match those losses against gains so they will not have to pay tax on the gains when those losses are taken. We should see more sales of winning assets with disruptions of bond prices.

Get this … France (which has strict gun control laws) has had five terrorist attacks so far in 2015 and Europe has seen a total of seven so far … in the US we have only had two (which occurred in places where guns were not allowed) … so to bring things “into more balance” for the greater good of humanity Obama wants to take away American’s right to own guns to defend themselves … because the “pattern” of mass shootings in this country is so low “that has no parallel anywhere else in the world” …http://www.thenewamerican.com/usnews/crime/item/22072-there-is-no-pattern-of-mass-shootings-in-america

Hi Greg:
Smart fellow, great interview. Not only Obama Care, but Obama himself will implode the economy (this is the plan I think). All that the POTUS stands for is disastrous for America. I’m amazed at how quickly everything is just falling apart. Yet this man/beast still retains his office/power with the Congress in complete disarray, running to and fro like chickens without heads, while the world stands back and mocks us as the ship goes down.

Greg, EtAl, Christmas greetings … Jerry- for a guy who tries to not post too much … you sure post a lot!! Keep up the good work!! As we see it … our job is the glean nuggets and connect the dots … whenever we see someone scratching their head saying ‘Gosh… what does it all mean??’ we are inclined to say … there is no accident here … TPTB (Lucifer) are orchestrating the end of our country / the end of our republic / the end of our Liberty and we are returning to an era of serfdom and servitude. Certainly Dark Stuff!!

We have prepared the best we can and we are certain that the pre-trib escape will not include us … we will face judgment and pray we are found worthy. The point is that regardless of when all of the catastrophes that stare us in the face come tumbling down … we do the best we can with what we have and we must pray / repent / and have faith in THE higher power and our savior Jesus Christ … what else is there ?? Crunch the numbers all you want … short of Devine Intervention … God help us all.

Great interview with Karl Denninger. I have practiced primary care medicine for over 30 years and have watched the slow strangulation of our health care system by large corporations, aided by the Federal Government. A few points:
1. Most of the health care dollars spent in this country are spent by the Feds. Over all, about 55% of all insurance is Medicare and Medical Assistance. The insured pay only a small portion of the cost of these premiums. Importantly, these premiums pay for most of the revenue that a hospital receives annually.
2. Hospital systems, including non-profits, are doing quite well in this environment. They have been buying small practices and eliminating patient choice at an alarming rate- at least in Pennsylvania. They claim it improves productivity, but this is untrue. Medicare granted hospitals the ability to charge a facility fee to supplement their income. This is a fee a private practice can not charge. Additionally, many systems have insurance arms to feed their system. One would think this would attract the interest of anti trust regulators, but it has not. This all leads to monopolistic behavior, where the administrative staff is very well compensated. The leaders of these systems behave as do the leaders of our large financial entities. The CEOs spend much of their time strategizing about building expansion, corporate deals, and target acquisition.
3. Physicians are no longer part of the picture. Forget about the AMA. It has been captured by the Federal government and used to fool people into believing it actually represents physicians. It does not. Most of the revenue the AMA gets comes from its monopoly of procedure codes. This of course is granted by the Federal government. Most physicians don’t care what is going on, because most are employed by the same health care systems mentioned about. In my county over 90% of the primary doctors are employed by one of three health care systems. They go to work, see patients, and collect a pay check. If there is a conflict of interest between the patient and their employer, do not count on them risking their job for your benefit.
Karl was absolutely correct that this system has been brought to you by our Federal government. It has been funded over the past 20 to 30 years with money borrowed from the social security trust fund and now printed money. As this all begins to fall apart we will see a slow unraveling of this health care monster. Hopefully we will be left with a system that is not only affordable but also provides higher quality care.

All services are consumption??? That statement is ludicrous! What about education, innovation, technology, science, consulting, et al? They are all services and without them there would be no production at all. I was shocked by what he said about services to open this interview.

As someone who became rich from a technology company he should know better.

We are moving to a service economy and leaving the industrial economy as we get richer. Its is a sign of increasing wealth relative to the rest of the world. Clearly Mr Denninger doesn’t understand economics. Nor does he understands what causes inflation. He thinks its government spending through borrowing not the FED.

He should learn about Mises, Rothbard, and Austrian economics if he wants to understand how wealth is created.

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Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin.

USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.